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Government of Tamilnadu

Transparency in Tender

Act 1998 and Rules 2000

Tamil Nadu Transparency in Tenders Act, 1998

THE TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998

Sections 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Definitions

CONTENT Short title, extent and commencement Prohibitions of procurement except by tender Regulation of tenders Appointment of Bulletin Officer Functions of Bulletin Officers Appointment of Tender Inviting Authority and Tender Accepting Authority Opening of tender Functions of the Tender Inviting Authority Evaluation and acceptance of tender Appeal Right to reject tender Power to obtain information Power of Government to call for records Procedure to be followed in certain cases Provisions of this Act not to apply in certain cases. Central Act XLV of 1860 - Officers deemed to be public servants Indemnity Bar of Jurisdiction Act of override other laws Power to remove difficulties Power to make rules Savings THE SCHEDULE

Tamil Nadu Transparency in Tenders Act, 1998

THE TAMIL NADU TRANSPARENCY IN TENDERS ACT, 1998


TAMIL NADU ACT NO.43 OF 1998

The following act of the Tamil Nadu Legislative Assembly received the assent of the President on the 11th December 1998 and is hereby published for general information:-

An Act to provide for transparency in the public procurement and to regulate the procedure in inviting and accepting tenders and matters connected therewith or incidental thereto.

WHEREAS to maximise economy and efficiency in Government procurement;

AND WHEREAS to foster and encourage effective participation by tenderers in the process of tenders;

AND WHEREAS to promote healthy competition among tenderers;

AND WHEREAS to provide for fair and equitable treatment of all tenderers;

AND WHEREAS it is expedient to eliminate irregularities, interference and corrupt practices in the matters relating to tender processes by providing transparency in such matters;

AND WHEREAS to promote the integrity of the process of tenders and to promote fairness and public confidence in the processing of tenders by ensuring transparency in the procedure relating to procurement;

Tamil Nadu Transparency in Tenders Act, 1998

Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Forty-ninth year of the Republic of India as follows:1. (1) This Act may be called the Tamil Nadu Transparency in Tenders Act, 1998. (2) It extends to the whole of the State of Tamil Nadu. (3) It shall come into force on such date1 as the Government may, by notification, appoint.
Short title, extent and commencement

2. In this Act, unless the context otherwise requires,(a) Construction means all works associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or any other related works;
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Definitions.

(aa) 'domestic small scale industrial unit' means an industrial unit in which the investment in fixed assets in plant and machinery, whether held in ownership or on lease or by hire purchase, does not exceed rupees one hundred lakhs, and which manufactures the goods within the State and registered with the Director of Industries and Commerce.

(b) Goods means raw materials, products, equipment and other objects of every kind and description and includes electricity; (c) Government means the State Government; (d) Procurement means acquisition by any means by purchase of goods or services and also of construction; (e) procuring entity means the entity specified in the Schedule to this Act; (f) Tender means the formal offer made in pursuance of an invitation by the procuring entity; (g) Tender Bulletin means the bulletin published for each district or State, containing details of invitation and acceptance of tender; (h) Tender Bulletin Officer means any officer appointed by the Government to publish the district or State Tender Bulletin;
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1st day of October 2000 (Vide G.O.Ms.No.445, Finance (Salaries) Department., dated 26th September 2000) This clause was inserted by section 2(1) of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2001 (Tamil Nadu Act 14 of 2001) which came into effect on the 1st day of December 2001. [G.O .Ms.No .451, Finance (Salaries) Dept. Dated 16th November 2001]

Tamil Nadu Transparency in Tenders Act, 1998

(i) Tender Document means a set of papers containing schedule of works, rates, requirement of goods or services, technical specifications, procedure and criteria as may be prescribed for evaluation and comparison of tenders and such other particulars as may be prescribed;
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"Provided that such criteria for evaluation and comparison of tenders shall also provide for a price preference, (a) not exceeding fifteen percent for the domestic small scale industrial units; (b) not exceeding ten percent for the Public Sector Undertakings of the Government in respect of products and quantities manufactured by them."

Prohibition or procurement except by tender

3.(1) No procurement shall be made by the procuring entity except by tender. (2) The provisions of sections 9 and 10 shall not apply to any procurement made by a procuring entity, in the normal course, if it is for carrying on business of selling and buying goods; Provided that in case of procurement by the procuring entities on behalf of and for sale to Government or Government organisations for any Government programme, such procurement shall be only by tender.

Regulation of Tenders

4. No tender shall be invited or accepted by any authority after the commencement of this Act, except in accordance with the procedure specified in this Act and the rules made there under.

Appoint of Bulletin Officer

5. The Government may, by notification appoint,(a) an officer of the Government not below the rank of a Deputy Secretary to Government as State Tender Bulletin Officer2; (b) an officer not below the rank of a Deputy Collector as District Tender Bulletin Officer3 for every district;
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This proviso was added by section 2(i) of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2001 (Tamil Nadu Act 14 of 2001) which came into effect on the 1st day of December 2001. [G.O.Ms.No.451, Finance (Salaries) Dept., Dated 16th November 2001] The Director, Information and Public Relations was appointed as State Tender Bulletin Officer[Vide G.O.Ms.No.233,Finance(Salaries)Dept, dated 15th June, 2001].
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The District Public Relation Officer attached to the Collector of every district was appointed as District Tender Bulletin Officer for respective districts [Vide G.O.Ms.No.447, Finance (Salaries) Dept., dated 26th September, 2000].

Tamil Nadu Transparency in Tenders Act, 1998

6.(1) On receipt of intimation relating to details of notice of invitation of Tender, from the Tender Inviting Authority, information relating to acceptance of tender together with a comparative analysis and reasons for acceptance of tenders from the Tender Accepting Authority, the State or as the case may be, the District Tender Bulletin Officer shall, publish the same in the State or District Tender Bulletin, as the case may be within such time as may be prescribed; Provided that, if the procurement covers more than one district, the invitation and the acceptance of tenders shall be published in the State Tender Bulletin and also in the District Tender Bulletin of such districts. (2) The Tender Bulletin shall be made available for sale in the office of the Tender Bulletin Officer and at such other places as may be specified by him. 7. (1) The Government or the procuring entity, may, by order, appoint an officer under its control as Tender Inviting Authority for carrying out the functions assigned to it under this Act. (2) The Government or the procuring entity, may, by order, appoint an officer or a committee consisting such number of officers as may be prescribed as Tender Accepting Authority for carrying out the functions assigned to it under this Act. (3) Notwithstanding anything contained in sub-sections (1) and (2), (a) where the Government is the Tender Accepting Authority, Tamil Nadu Government Business Rules shall be followed for tender acceptance ensuring adherence to the other provisions of this Act; (b) where a Multi-member Tender Accepting Authority is discharging its functions under other Acts, such Multimember Authority shall be deemed to be Tender Accepting Authority under this Act. 8. The Tender Accepting Authority or any other officer authorised by it, shall open the tenders in the presence of tenderers present and who have submitted tenders in such time and in such place as may be specified in the tender document; 9. (1) The Tender Inviting Authority shall invite tenders in the form of a notice containing such particulars as may be prescribed. (2) The Tender Inviting Authority shall communicate the notice inviting tenders to the Bulletin Officers according to the value of the procurement and within such time as may be prescribed, so as to publish the same in the appropriate Tender Bulletin.

Functions of Bulletin Officers

Appointment of Tender Inviting Authority and Tender Accepting Authority

Opening of tender

Functions of Tender Inviting Authority

Tamil Nadu Transparency in Tenders Act, 1998

(3) The Tender Inviting Authority shall also publish the notice inviting tenders in Indian Trade Journal and in daily newspapers having wide circulation depending upon the value of the procurement prescribed. (4) The Tender Inviting Authority shall supply the schedule of rates and tender documents in such manner and in such places as may be prescribed to every intending tenderer who has applied for such document.
Evaluation and Acceptance of Tender

10. (1) The Tender Accepting Authority shall cause an objective evaluation of the tenders taking into consideration the schedule of rates as mentioned in the tender document and the prevailing market rate for procurement and comparison of the tenders in accordance with the procedure and criteria specified in the tender document. (2) After evaluation and comparison of tenders as specified in sub-section (1), the Tender Accepting Authority shall accept the lowest tender ascertained on the basis of objective and quantifiable factors specified in the tender document and giving relative weights among them. (3) Notwithstanding anything contained in sub-section (2), if the Tender Accepting Authority decides that the price of the lowest tender is higher with reference to the prevailing market rate or the schedule of rates, he may negotiate for a reduction of price with that tenderer. (4) If at any time before the acceptance of tender, the Tender Accepting Authority receives information that a tenderer who has submitted tender has been banned by any procuring entity, he shall not accept the tender of that tenderer even if it may be the lowest tender. (5) In case where two or more tenderers quoted the same price, the Tender Accepting Authority shall split the procurement among such tenderers taking into consideration the experience and credentials of such tenderers. Where such splitting is not possible or could not be done equally, he shall record reasons for the same. (6) If the Tender Accepting Authority proposes to accept the tender as per the provisions of this section, he shall pass orders accepting the tender together with reasons for such acceptance. (7) The Tender Accepting Authority shall intimate the information regarding the name and address of the tenderer whose tender has been accepted along with the reasons for rejection of other tenders to the appropriate Tender Bulletin Officers.

Tamil Nadu Transparency in Tenders Act, 1998

s 11. (1) Any Tenderer aggrieved by the order passed by the Tender Accepting Authority under section 10 may appeal to the Government within ten days from the date of receipt of order and the Government shall dispose the appeal within fifteen days from the date of receipt. (2) In disposing of an appeal under sub-section (1), the Government may, after giving the party an opportunity of making his representations, pass such order thereon as they may deem fit. (3) The order of the Government on such appeal shall be final. (4) The Government may, pending the exercise of their powers under this section pass such interlocutory orders as they may deem fit. 12. (1) After negotiation with the tenderer and before passing the order accepting a tender as under sub-section (6)of Section 10, if the Tender Accepting Authority decides that the price quoted by such tenderer is higher by the percentage as may be prescribed over the schedule of rates or prevailing market price, he shall reject the tender. (2) The Tender Accepting Authority before passing the order accepting a tender, may also reject all the tenders for reasons such as changes in the scope of procurement, new technologies or substantial design changes, lack of anticipated financial resources, court orders, accidents or calamities and other unforeseen circumstances. 13. Notwithstanding anything contained in this Act or in any other law for the time being in force, the Government may with a view to ensuring transparency in tender process, by order in writing, call for any information relating to transparency from the Tender Inviting Authority or from the Tender Accepting Authority on any matter in tender processing and the said Authority shall furnish the same to the Government. 14. The Government may at any time, with a view to ensuring transparency in tender process, require any authority,(a) to produce records relating to invitation and acceptance of tenders; (b) to furnish the tender document, estimate, statement, accounts or statistics relating to such tenders; and (c) to furnish any report. 15. The provisions of this Act to the extent they are not consistent with the procedure prescribed in the Projects funded by International Agreements or by International Financial Agencies shall not apply.
Power to obtain information Right to reject Tender. Appeal.

Power of Government to call for records.

Procedure to be followed in certain cases.

Tamil Nadu Transparency in Tenders Act, 1998

Provisions of this Act not to apply in certain cases.

16. The provisions of sections 9 and 10 shall not apply to procurement,(a) during natural calamities and emergencies declared by the Government; (b) available from a single source only from a supplier or cases in which a particular supplier or contractor has exclusive rights in respect of the goods or services or construction and no reasonable alternative or substitute exists or where the procuring entity having procured goods, equipment, technology from a supplier or contractor determines that additional supplies must be procured from that specific supplier or contractor for reasons of standardization and compatibility with the existing goods, equipment or technology; Provided that a committee of three experts consisting one technical representative of the procuring entity, one technical representative of a State or Central Government Organisation dealing with similar procurement and one representative from a reputed Academic or Research Institution or Non-commercial Institution having expertise in such line, declares it as single source procurement; (c) from certain departments of Government, public sector undertakings, statutory boards and such other institutions only in respect of goods manufactured or services provided by them for a period not exceeding eleven years1 from the date of commencement of this Act; (d) of low value and local purchases as may be prescribed;
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(dd) from domestic small-scale industrial unit for the reserved items identified by the Central Government:

Provided that where a procuring entity intends to procure any of such reserved items, the procuring entity shall procure such item from the domestic small-scale industrial units and the provisions of section 9 and 10 shall apply to such procurement;
These words were substituted for the words "six years" by Section 2 of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2006 (Tamil Nadu Act 28 of 2006) which came into effect on the 1st day of October 2006.(This provision of section 16 ( c) was extended by the Government in two spells of two years each from 01.10.2002 and from 01.10.2004 i.e., upto 30.09.2006 by amendments issued to the Act in Gazette Notification No.757, dated 18.11.2002 and in Gazette Notification No.305, dated 09.12.2004)
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This clause was inserted by section 3(a) of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2001 (Tamil Nadu Act 14 of 2001) which came into effect on the 1st day of December 2001.

Tamil Nadu Transparency in Tenders Act, 1998

(e) from the rate contracts of Director-General of Supplies and Disposals and Association of State Road Transport Undertakings; and (f) by spot purchase of cotton by Spinning Mills, Oil Seeds and Oils by Tamil Nadu Agro Industries Corporation or Tamil Nadu Cooperative Oil Seeds Growers Federation Limited, animals from shanties, Sugarcane by Sugar Mills, Paddy by direct purchase centres of the Tamil Nadu Civil Supplies Corporation, Clothing by Co-optex from registered Primary Weaver Co-operatives, Milk by Tamil Nadu Cooperative Milk Producers Federation from Districts and Primary Milk Co-operative Societies, Palm oil by Tamil Nadu Civil Supplies Corporation from Tamil Nadu Cooperative Oil Seeds Growers Federation for Noon Meal Scheme, Clothing by Government Departments, Public Sector Undertakings and statutory departments from Co-optex and similar organisations and materials as may be notified1 by Government.
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National Textile Corporation, Coimbatore has been notified for purchase of uniform cloth by Police Department [Vide G.O.Ms.No.179, Finance (Salaries) Dept., Dated: 17th May, 2002]. The Ordnance Factory and the Defence Research and Development Organisation of the Ministry of Defence, Government of India and the Bureau of Police Research and Development Organisation of the Ministry of the Home Affairs, Government of India have been notified for purchase of defence and security related items by Director General of Police. [Vide G.O.Ms.No.166, Finance (Salaries) Dept., Dated: 28th May, 2003]. The procurement of weaning food directly from Womens Industrial Cooperative Societies to the extent of 65% of the requirement or upto the optimum level that could be supplied by the said societies whichever is less and entrustment of work relating to stitching of school uniforms intended for free supply to school going children to the Womens Co-operative Tailoring Societies registered with the Director of Social Welfare as on the date of entrustment of work have been notified (Vide G.O.Ms.No.63, Finance (Salaries) Department, dated 16.2.2007). The Tamil Nadu Salt Corporation Limited, Chennai has been notified for supply of Double Fortified Salt to all the Nutritious Meal Programme Centres in all the Districts so as to enable the Government to procure the entire quantity of Double Fortified Salt required for the Nutritious Meal Programme Centres under Puratchi Thalaivar MGR Nutritious Meal Programme.(Vide G.O.Ms.No.239, Finance (Salaries) Department, dated 12.06.2007) The procurement of wooden and steel furniture including computer furniture from Tamil Nadu Small Industries Corporation Limited (TANSI), by the procuring entities under the Act, subject to the condition that Tamil Nadu Small Industries Corporation Limited (TANSI) shall effect the supplies within the time stipulated by the procuring entities has been notified (Vide G.O.Ms.No.401, Finance (Salaries) Department, dated 29.08.2007).

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Tamil Nadu Transparency in Tenders Act, 1998

Entrustment the work of redesigning the Perambur fly-over with the assistance of a suitable consultant to the Anna University, Chennai has been notified (Vide G.O.Ms.No.472, Finance (Salaries) Department, dated 01.10.2007). Entrustment of works taken up under Namakku Naame Thittam to the contributors themselves on optional basis in respect of the works in which the Government contribution is 50% or less in terms of the value of the work has been notified (Vide G.O.Ms.No.548, Finance (Salaries) Department, dated 14.11.2007). Delhi Metro Rail Corporation Limited, a joint venture of Government of India and Government of Delhi, as Interim Consultants for a period of one year and subsequently as Prime Consultants has been notified for Chennai Metro Rail Project (Vide G.O.Ms.No.45, Finance (Salaries) Department, dated 13.02.2008). The procurement of indigenous coal by Tamil Nadu Electricity Board from the Public Sector Undertakings of Government of India at the prices as notified by the Government of India and import of coal through Central Public Sector Undertakings which have been in the business of importing coal and supplying to Government owned power utilities, at the price negotiated with the concerned Central Public Sector Undertakings or import of coal through Tamil Nadu Newsprint and Papers Limited, procured by means of competitive bidding, without prejudice to the right of Tamil Nadu Electricity Board to procure imported coal through competitive bidding as per the TNTIT Act has been notified (Vide amendment to notification issued in G.O Ms No.417,Finance (Salaries)Department, dated 28.08.2009 to the notification issued in G.O.Ms.No.172, Finance (Salaries) Department, dated 28.04.2008). The award of execution of works by the Tamil Nadu Electricity Board under Rajiv Gandhi Grameen Vidyutikaran Yojana in 26 districts of Tamil Nadu and all future works under Rajiv Gandhi Grameen Vidyutikaran Yojana to M/s.Tamil Nadu Small Industries Corporation, a Government of Tamil Nadu Undertaking on total turnkey contract basis has been notified (VideG.O.Ms.No.242, Finance (Salaries) Department, dated 16.06.2008). The procurement of services of training by Government Departments and other procuring entities under the said Act from the State Government and the Government of India Educational and Training Institutes and the Universities established by the State and Central Government has been notified (VideG.O.Ms.No.437, Finance (Salaries) Department, dated 07.10.2008). The procurement of milk and milk products from the Tamil Nadu Cooperative Milk Producers Federation (Aavin) and controlled essential commodities such as Rice, Wheat, Sugar, Rava and Maida from the Tamil Nadu Civil Supplies Corporation Limited by the Prison Department subject to the condition that the said corporation shall supply Rice at above poverty line rate fixed by the Government of India has been notified (VideG.O.Ms.No.483, Finance (Salaries) Department, dated 11.11.2008) . The appointment of the Centre of Environmental Studies , Anna University, Guindy, Chennai-600 025 as the consultant for a period of 4 months to assess the Environmental Impact to the new complex for the Tamil Nadu Legislative Assembly to be constructed by the Public Works Department has been notified (VideG.O.Ms.No.500, Finance (Salaries) Department, dated 19.11.2008) .

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Tamil Nadu Transparency in Tenders Act, 1998

The award of construction of the Dairy-cum-powder plant with a capacity of 2.00 Lakhs Litre per day with 20 metric tonnes of powder plant at Thiruvannamalai on turnkey basis to the National Dairy Development Board by the Commissioner for Milk Production and Dairy Development has been notified (VideG.O.Ms.No.540, Finance (Salaries) Department, dated 18.12.2008). The appointment of the Tamil Nadu Urban Infrastructure Financial Services Limited as consultant to render advice to the Tourism and Culture Department for the Miniature Tamil Nadu project till the completion of the works has been notified (VideG.O.Ms.No.4, Finance (Salaries) Department, dated 06.01.2009. The procurement of provision of Common User Group Mobile Phone services from Bharat Sanchar Nigam Limited(BSNL) by the Tamil Nadu Police Department has been notified (VideG.O.Ms.No7, Finance (Salaries) Department, dated 07.01.2009). The entrustment of the project on Geographical Information System (GIS) by the Public (Elections-II) Department for electoral Rolls updation, rationalization of Polling Stations as per the terms and conditions of the orders issued in Government Order Ms No. 88, Public(Elections-II) Department, dated 22.01.2009 in all the districts of Tamil Nadu except Thiruvallur district to the Bharathidasan University, Tiruchirappalli has been notified (VideG.O.Ms.No73, Finance (Salaries) Department, dated 23.02.2009). The procurement of groceries (other than the commodities viz., Rice, Wheat. Sugar, Rava and Maida notified in the Government Order Ms. No.483, Finance(Salaries) Department, dated 11.11.2008 ) and vegetables required by the Prison Department directly from the Co-operative Societies has been notified (Vide G.O.Ms.No 115, Finance (Salaries) Department, dated 24.03.2009). The appointment of the Tamil Nadu Road Development Company Limited (TNRDC) as the Managing Associate, for the work of calling for tenders and coordination of the execution of works during the period of construction of Outer Ring Road from Vandalur to Nemilichery under Build, Operate and Transfer Annuity basis, as per the terms and conditions laid down in paragraph 5 of G.O.Ms.No.32, Highways and Minor Ports (HF2) Department, dated 25.02.2009 has been notified (Vide G.O.Ms.No 116, Finance (Salaries) Department, dated 24.03.2009) . The spot purchase of domestically produced Toor Dhal from the production centres by the Tamil Nadu Civil Supplies Corporation (TNCSC) for the Public Distribution System till 30.06.2009 has been notified (Vide G.O.Ms.No 142,Finance (Salaries) Department, dated 13.04.2009). The procurement of coal by the Tamil Nadu Cements Corporation Limited either from the Tamil Nadu Electricity Board or from the Tamil Nadu Newsprint and Papers Limited whichever is advantageous has been notified (Vide G.O.Ms.No 179, Finance (Salaries) Department, dated 04.05.2009) . The procurement of khaki cloth, white poplin cloth, blue casement cloth and blue half saree cloth by the Director of Handloom and Textiles required for the free supply of uniforms to the beneficiaries covered under Puratchi Thalaivar M.G.R Nutritious Meal Programme from the Tamil Nadu Textile Corporation, subject to the condition that the procurement will be restricted to the said

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Tamil Nadu Transparency in Tenders Act, 1998

categories of cloth which are actually produced by the mills owned by the Tamil Nadu Textile Corporation has been notified (Vide G.O.Ms.No 181 Finance (Salaries) Department, dated 05.05.2009). The procurement of provision of Common User Group Mobile Phone services from Bharat Sanchar Nigam Limited(BSNL) by the Tamil Nadu Forest Department has been notified (Vide G.O.Ms.No302, Finance (Salaries) Department, dated 17.07.2009). The appointment of the Indian National Trust for Art and Cultural Heritage (INTACH) as the consultant to render Consultancy, Monitoring and Supervising Services for the Tranquebar Development Project has been notified (Vide G.O.Ms.No303, Finance (Salaries) Department, dated 17.07.2009) The procurement of provision of Common User Group mobile phone services from Bharat Sanchar Nigam Limited(BSNL) by the Tamil Nadu Fire and Rescue Services Department has been notified (Vide G.O.Ms.No403, Finance (Salaries) Department, dated 24.08.2009). The Tamil Nadu Urban Infrastructure Financial Services Limited has been notified as optional consultancy providing/procuring agency, subject to the condition that in each case, Government will fix the consultancy fee, wherein the Tamil Nadu Urban Infrastructure Financial Services Limited itself carries out the consultancy and service charges, in case external consultancy is procured by the Tamil Nadu Urban Infrastructure Financial Services Limited(Vide G.O.Ms.No.484, Finance (Salaries) Department, dated 06.10.2009). The entrustment of Rapid Environmental Impact Assessment Studies to the Centre for Environmental Studies, Anna University, Chennai- 25 on nomination basis in connection with the formation of flood carrier canal from Kannadian Channel to drought prone areas of Sathankulam and Thisaiyanvilai by inter-linking Thamirabarani, Karumeniyar and Nambiyar Rivers in Tirunelveli and Thoothukudi Districts has been notified (Vide G.O.Ms.No.561, Finance (Salaries) Department, dated 22.12.2009). The New Tirupur Area Development Corporation Limited(NTADCL) has been notified as the Consultant for preparation of Detailed Project Report for Water Supply Improvement Schemes and Sewerage Works and Project Management Consultancy in respect of Tirupur Corporation (Vide G.O.Ms.No.77, Finance (Salaries) Department, dated 11.03.2010). The entrustment of the improvement work of auditoriums and formation of mini auditoriums for the conduct of World Tamil Classical Language Conference to Coimbatore District Small Scale Industries Association (CODISSIA) Intec Technology Centre, Coimbatore, subject to the conditions laid down in para 9 of the G.O (Ms) No.119, Tamil Development, Religious Endowments and Information Department, dated 13.04.2010, has been notified (Vide G.O.Ms.No 125, Finance (Salaries) Department, dated 30.04.2010). The entrustment of the preparation of Three Master Plans for Mamallapuram Local Planning Area, Ariyalur Local Planning Area and Sriperumbudur New Town Development Area using Geographical Information System(GIS) to the Institute of Remote Sensing, Anna University, Guindy, Chennai under IKONOS/Quick Bird Method has been notified (Vide G.O.Ms.No.220, Finance (Salaries) Department, dated 28.07.2010)

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Tamil Nadu Transparency in Tenders Act, 1998

The procurement of 2.0 lakh tonnes fine variety of boiled rice from Andhra Pradesh State Civil Supplies Corporation procured from the millers of Andhra Pradesh at the levy rate fixed by the Government of India, by the Tamil Nadu Civil Supplies Corporation for the Public Distribution System(PDS) has been notified (Vide G.O.Ms.No.221, Finance (Salaries) Department, dated 28.07.2010). The procurement of the services of Bharat Sanchar Nigam Limited (BSNL) for telecom solutions such as provisions of Landline, ISDN,PRI and 100 Mbps Internet leased line at Anna Centenary Library, Kotturpuram, Chennai by the Director of Public Libraries has been notified (Vide G.O.Ms.No.363, Finance (Salaries) Department, dated 15.09.2010).
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(g) of cement from the Tamil Nadu Cement Corporation Limited, or of paper from the Tamil Nadu Newsprints and Papers Limited: Provided that,-(a) a committee consisting of the Secretary to Government, Industries Department, the Secretary to Government, Finance Department and the Chairman-cum-Managing Director or the Managing Director, Tamil Nadu Cement Corporation Limited shall determine the price of cement to be procured; (b) the price of paper shall be negotiated with the Tamil Nadu Newsprints and Papers Limited by the procuring entity."
Central Act XLV of 1860 Officers deemed to be public servants. Indemnity

17. Every Officer acting under or in pursuance of the provisions of this Act or rule or order or notification made there under, shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code. 18. No suit or other legal proceeding shall lie against the Government or any officer or authority of the Government in respect of anything which is in good faith done or intended to be done. 19. Save as otherwise provided in this Act no order passed or proceeding taken by any officer or authority under this Act shall be called in question in any court, and no injunction shall be granted by any court in respect of any action taken or to be taken by such officer or authority in pursuance of any power conferred by or under this Act. 20. The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any custom or usage or agreement or decree or order of a Court or a Tribunal or other Authority.
This clause was added by section 3(b) of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2001 (Tamil Nadu Act 14 of 2001) which came into effect on the 1st day of December 2001.
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Bar of Jurisdiction.

Act to override other laws.

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Tamil Nadu Transparency in Tenders Act, 1998

Power to remove difficulties

21. If any difficulty arises in giving effect to the provisions of this Act, the Government may, by an order published in the Tamil Nadu Government Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to them to be necessary or expedient for removing the difficulty: 1 [Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.] 22. (1) The Government make rules for carrying out the purposes of this Act. (2) (a) All rules made under this Act shall be published in the Tamil Nadu Government Gazette and unless they are expressed to come into force on a particular day, shall come into force on the date on which they are so published. (b) All notifications issued under this Act shall, unless they are expressed to come into force on a particular day, come into force on the day on which they are published. (3) Every rule made or notification or order issued under this Act shall, as soon as possible, after it is made or issued, be placed on the table of the Legislative Assembly; and if, before the expiry of the session in which it is so placed or the next session, the Assembly makes any modification in any such rule or notification or order, or the Assembly decides that the rule or notification or order should not be made or issued , the rule or notification or order shall thereafter have effect only in such modified form or to be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification or order. 23. All the existing rules, regulations, departmental codes, manuals, orders shall so far as they are not inconsistent with the provisions of this Act and the rules made there under, continue in force.

Power to make rules.

This proviso was omitted by Section 3 of the Tamil Nadu Transparency in Tenders (Amendment) Act, 2002 (Tamil Nadu Act 43 of 2002) which came into effect on the 30th day of September 2002

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THE SCHEDULE
[See Section 2 (e)]

Procuring Entity
1. Government Departments. 2. Public Sector Undertakings of the Government. 3. Statutory Boards formed by the Government. 4. Local Bodies in the State. 5. Co-operative Institutions in the State. 6. Universities. 7. Societies formed by the Government.

(By Order of the Governor) A.K. RAJAN, Secretary to Government, Law Department.

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Tamil Nadu Transparency in Tenders Act, 1998

FINANCE (SALARIES) DEPARTMENT GOVERNMENT OF TAMIL NADU 2000 MANUSCRIPT SERIES

G.O.Ms.No.445, DATED 26th September, 2000 (Vikkirama, Purattasi-11, Thiruvalluvar Aandu 2031) Act - Tamil Nadu Transparency in Tenders Act, 1998 (Tamil Nadu Act 43 of 1998) Date of coming into force of the Act - Notified. ORDER: The following Notification will be published in the Tamil Nadu Government Gazette, Extraordinary dated the 1st October, 2000. NOTIFICATION. In exercise of the powers conferred by sub-section(3) of section 1 of the Tamil Nadu Transparency in Tenders Act, 1998 (Tamil Nadu Act 43 of 1998), the Governor of Tamil Nadu hereby appoints the 1st day of October 2000 as the date on which the said Act shall come into force. (BY ORDER OF THE GOVERNOR) P.V. RAJARAMAN, SECRETARY TO GOVERNMENT. To The Works Manager, Government Central Press, Chennai-79. (for the publication of the notification and send 200 copies to Government) All Secretaries to Government. xxx xxx xxx xxx xxx xxx xxx xxx xxx. Stock File/Spare Copies. -/ Forwarded : By Order /sd/SECTION OFFICER.

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THE TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000

THE TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000

CHAPTER

RULES

CONTENT

I.

PRELIMINARY 1. Short tile, extent and commencement 2. Definitions

II.

GENERAL 3. Categories of procurement 4. Methods of tendering PUBLICITY Publication of tender bulletin Distribution of tender bulletins Tender Bulletin to contain information only Information to be published in the district tender bulletin Information to be published in the State tender bulletin Details to be mentioned in notice inviting tenders Publication of notice inviting tenders in newspapers Sending notice inviting tenders to all possible tenderers

III. 5. 6. 7. 8. 9. 10. 11. 12.

IV. 13. 14. 15. 16. 17.

NOTICE INVITING TENDERS AND TENDER DOCUMENTS Technical specifications contained in the tender documents Commercial conditions Tender documents to clearly specify evaluation criteria Supply of tender documents Clarification to tender documents

Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER

RULES

CONTENT

V. 18. 19. 20. 21. 22.

RECEIPT OF TENDERS AND TENDER OPENING Place and time for receipt of tenders Marketing of covers in which the tender is submitted Minimum time for submission of tenders Opening of tenders Procedure to be followed at tender opening

23. Changes and alterations not be permitted after tender opening 24. Tender scrutiny committee VI. TENDER EVALUATION 25. Tender evaluation to be in accordance with evaluation criteria 26. Time taken for evaluation and extension of tender validity 27. Process of tender evaluation to be confidential until the award of the contract is notified 28. Initial examination to determine substantial responsiveness 29. Determination of the lowest evaluated price 30. Preparation of evaluation report and award of tenders

VII.

EVALUATION AND AWARD OF TENDERS IN SPECIAL CASES 31. Procurement in special cases 32. Pre-qualification procedure 33. Low value procurement

Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER-I.

PRELIMINARY.
1. Short title and commencement.(a) These rules may be called the Tamil Nadu Transparency in Tenders Rules, 2000. (b) They shall come into force on the date 1st October, 2000. 2. Definitions.- In these rules, unless there is anything repugnant in the subject or context,(a) Act means the Tamil Nadu Transparency in Tenders Act, 1998 (Tamil Nadu Act 43 of 1998); (b) supply and installation contract means a contract under which the tenderer is required to supply, erect, test and commission the equipment at the place specified by the procuring entity;

(c) fixed rate contract means a contract where a set of rates and terms and conditions are fixed for the supply of unit quantities of goods or certain standardized services; (d) pre-qualification means the process by which the tenderers are first screened for their capability and resources to implement the contract before they are permitted to offer their tenders;

(e) two-cover system means a procedure under which the tenderers are required to simultaneously submit two separate sealed covers, one containing the Earnest Money Deposit and the details of their capability to undertake the tender which will be opened first and the second cover containing the price quotation which will be opened only if the tenderer is found qualified to execute the tender; (f) earnest money deposit means the amount required to be remitted by a tenderer along with his tender indicating his willingness to implement the contract; and (g) piece-work contract and lump-sum contract shall have the same meaning as in the Tamil Nadu Public Works Department code.

Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER-II.

GENERAL
3. Categories of procurement.(1) For the purposes of the application of these rules, procurement is categorized as follows, namely:(i) Construction; and (ii) Supply of goods and services. (2) While the provisions of these rules shall apply in general to each of the categories of procurement in sub-rule (1), where a specific provision has been made in the rules regarding any specific category, that specific provision shall prevail as against any general provision in so far as that category of procurement is concerned. 4. Methods of tendering.(1) Procurement of different categories shall be effected by the following methods of tendering, namely:(i) Piece-work contract; (ii) Lump-sum contract; (iii) Turn-key contract; (iv) Multi-stage contracting including pre-qualification and two cover system; and (v) Fixed rate contract.

(2) The tender inviting authority shall decide the method of tendering to be followed in each case having regard to the category, size and complexity of the procurement. (3) While the provisions of these rules shall apply to each of the methods of procurement indicated in sub-rule(1) generally where a specific provision has been made in these rules regarding a particular method of tendering, such specific provision shall prevail as against any general provision in so far as that particular method of tendering is concerned.

Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER III.

PUBLICITY.
5. Publication of tender bulletin:(1) The District Tender Bulletin shall be published by the District Bulletin Officer at least once in every week. (2) The State Tender Bulletin shall be published by the State Tender Bulletin Officer at least once in every week. (3) The Tender Bulletin Officer shall cause to be published all notices inviting tenders and intimations of acceptance of tenders received upto twenty four hours prior to the actual publication of the bulletin. (4) In case a notice inviting tender or information relating to acceptance of the tender needs to be published urgently, then the Secretary to Government of the concerned administrative department in the case of the State tender bulletin or the District Collector in the case of the District tender bulletin can for reasons to be recorded in writing, direct the respective tender bulletin officers to publish an extraordinary issue of the tender bulletin. 6. Distribution of tender bulletins.(1) The Tender Bulletin Officer shall make the tender bulletin available at any office of a Government department, local authority, statutory board, public sector undertaking, local body, university or cooperative institution. (2) The Tender Bulletin Officer shall make available adequate copies of the tender bulletin at the office of the Tender Inviting Authority whose notice inviting tenders and intimation of tender acceptance finds place in the bulletin. (3) Any person or institution can be enrolled as a regular subscriber to the tender bulletin on payment of a fixed fee annually, half-yearly or quarterly, as the case may be.

7. Tender bulletin to contain information only.(1) The tender bulletin shall contain only information of the notice inviting tenders and the orders accepting a tender and does not in itself create a legal right or liability. (2) A notice inviting tender will not be invalidated merely on the grounds that the notice although published in newspapers has not been published in one or the other of the District Tender Bulletins or State Tender Bulletins or when published in the State Tender Bulletin could not be published in a District Tender Bulletin or vice versa.

Tamil Nadu Transparency in Tenders Rules, 2000

8. Information to be published in the district tender bulletin:Subject to the provisions of rule 10, notices inviting tenders and decisions on tenders in all cases where the value of the procurement exceeds rupees five lakhs or below rupees twenty five lakhs shall be published in the District Tender Bulletin of the district where the headquarters of the Tender Inviting Authority is located and in the district where the work is to be executed or the goods and services supplied. 9. Information to be published in the State tender bulletin:The notice inviting tenders and decisions on tenders shall be published in the State Tender Bulletin in cases where.(a) the value of procurement exceeds rupees twenty five lakhs; (b) The Tender Inviting Authority is a Secretary to Government, or a head of a Government department, or Local Authority or the Chief Executive of a Public Sector Undertaking, Statutory Board, Apex Cooperative Institution, University or State Level Society formed by the Government. (c) In any other case, where the Tender Inviting Authority deems it fit. 10. Details to be mentioned in notice inviting tenders.The Notice Inviting Tenders shall contain the following details, namely:(a) The name and address of the procuring entity and the designation and address of the Tender Inviting Authority; (b) Name of the scheme, project or programme for which the procurement is to be effected; (c) The date upto which and places from where the tender documents can be obtained; (d) The amount of earnest money deposit payable; (e) The last date and time for receipt of tenders; (f) The date, time and place for opening of tenders received; and (g) Any other information the Tender Inviting Authority considers relevant. 11. Publication of notice inviting tenders in newspapers.(1) The Tender Inviting Authority shall have the notice inviting tenders published in the Indian Trade Journal in all cases where the value of procurement exceeds rupees 1fifty crores. (2) The number, editions and language of the newspapers in which the notices inviting tenders shall be published will be based on the value of procurement.
1 This word substituted for the word ten crores by the orders issued in G.O Ms. No. 392, Finance(salaries) Department, Dated 18th August 2009.

Tamil Nadu Transparency in Tenders Rules, 2000

(3) In cases where publication of Tender Notices is to be done only in Newspapers with circulation within the District, the Information and Public Relations Officer attached to the District Collectorate shall be the competent authority to release the advertisement and in all other cases the competent authority to release the advertisement shall be the Director of Information and Public Relations, Chennai. (4) The notice inviting tender shall be given due publicity in Newspapers and also on notice boards in the District Offices. For tenders above rupees fifty lakhs, Director of Information and Public Relations will publish the Notice Inviting Tenders as per instructions of the tendering department. For other tenders, Director of Information and Public Relations will publish keeping in mind the request of the department. There should not be any additional insertion and no publication of Notice Inviting Tenders in newspapers not requested by the tendering departments for tenders above rupees fifty lakhs.

12. Sending notice inviting tenders to all possible tenderers.The Tender Inviting Authority may if he considers necessary, send the Notice Inviting Tenders to all possible tenderers including registered contractor, past supplier, any potential supplier and any other well known company or firm directly.

Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER IV.

NOTICE INVITING TENDERS AND TENDER DOCUMENTS.

13. Technical specifications contained in the tender documents.(1) The technical specifications contained in the tender documents shall include a detailed description of what is proposed to be procured. (2) Unbiased technical specifications shall be prepared by observing the following safeguards, namely:(a) use of brand names and catalogue numbers shall be avoided and where it becomes unavoidable, along with the brand name the expression or equivalent shall be added; (b) wherever possible the appropriate Indian Standards with the number shall be incorporated; (c) in the case of construction tenders, detailed estimates shall be prepared by the competent technical authorities based on the schedule of rates and standard data as revised from time to time provided that for large and prestigious projects, the Government shall permit any procuring entity to engage a qualified private architect or consultant to prepare the design and estimates; and (d) in case alternative designs or materials are permitted, the conditions for their acceptability and the method of their evaluation shall be clearly stated.

14. Commercial conditions.(1) The tender documents shall require all tenderers without exception to pay an earnest money deposit ordinarily not exceeding one per cent of the value of the procurement by means of a demand draft, bankers cheque, specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a prescribed form. The tender documents shall clearly state that any tender submitted without the earnest money deposit in the approved form be summarily rejected provided that any category of tenderers specifically exempted by the Government from the payment of earnest money deposit will not be required to make such a deposit. (2) The tender documents shall specify the period for which the tenderer should hold the prices offered in the tender valid: Provided that the initial period of validity shall not be less than ninety days.

Tamil Nadu Transparency in Tenders Rules, 2000

(3) The tender documents shall require that as a guarantee of the tenderers performance of the contract, a security deposit be taken from the successful tenderer subject to the conditions that (a) the amount of the deposit not exceeding five per cent of the value of the orders placed: and (b) the deposit being in the form of demand draft or bankers cheque or specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a prescribed form. (4) The tender documents shall clearly indicate the payment terms conforming to the following requirements.1

(a) "Payment shall ordinarily be effected only on completion of delivery against the orders placed.

Provided that payment of advance may be made in the following cases for sufficient reasons to be recorded by the procuring entity:(i) in cases where goods, commodities and services are procured through imports requiring opening of Letter of Credit; (ii) in cases where there is single source of supply only and where the practice of paying advance is already in vogue as a standard practice; (iii) in cases of purchase during natural calamities and emergencies declared by the Government under clause (a) of section 16 of the Act; (iv) in cases of purchase of life saving drugs; and (v) in cases where the standard commercial terms of supply require payment of advance by the procuring entity, such as the machinery and equipment manufacturers for sugar and cement plants". (b) Mobilization advances may be paid in the case of construction or supply and installation contracts of a large and complex nature, for a value exceeding rupees one crore provided that such mobilization advances shall not ordinarily exceed ten per cent of the value of the contract, shall be secured against irrevocable bank guarantee and shall be recovered in the subsequent bills payable along with interest as per specific terms set in the tender documents provided that in case of mobilisation advances for plant machinery and equipment, they are also hypothecated to the Governor of Tamil Nadu in addition to other requirements; (c) Percentage of payment to be withheld for the effective performance of the contract, provided that withheld amounts do not exceed ten per cent of the total value of contract;
This clause was substituted for the expression, "Payment shall ordinarily be effected only on completion of delivery against the orders placed, subject to the exceptions specified in the tender documents". [G.O.Ms.No.107, Finance (Salaries) Department, Dated 23-3-2004]
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Tamil Nadu Transparency in Tenders Rules, 2000

(d) Payment terms for imports shall be based on standard terms of international trade and the payment may be effected through irrevocable letters of credit drawn on banks; (5) The tender documents shall clearly indicate whether any variations in the commercial terms prescribed in the documents will be permitted and if so to what extent such variations would be considered. (6) The tender documents and the contract shall include a clause for payment of liquidated damages and penalty payable by the tenderer in the event of non-fulfillment of any or whole of the contract. (7) The tender documents shall clearly indicate the terms on which the tenderers will be required to quote their price which should be inclusive of all costs of delivery at the final destination such as transportation, payment of duties and taxes leviable, insurance and any incidental services and giving the break up thereof.
1

(7-A)The tender documents shall clearly indicate the criteria for evaluation and comparison of tenders and shall also provide for a price preference of fifteen percent for domestic small scale industrial units and ten percent for the Public Sector Undertakings of the Government in respect of products and quantities manufactured by them. (8) The tender documents shall include a price adjustment clause to reflect any changes either upward or downward in major cost components such as labour, equipment, material and fuel, based on a prescribed formula in the case of large contracts where the period of execution is likely to exceed eighteen months. (9) The tender documents shall indicate the quantity proposed to be procured in the tender, and the Tender Accepting Authority shall be ordinarily permitted to vary the quantity finally ordered only to the extent of twenty five percent either way of the requirement indicated in the tender documents.

15. Tender documents to clearly specify evaluation criteria.(1) The tender documents shall clearly indicate the criteria in addition to price which are to be adopted for evaluating the tenders and how such criteria will be quantified or evaluated; and

This sub-rule was inserted by the notification issued in G.O.Ms.No.452, Finance (Salaries) Department, Dated 16-11-2001.

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Tamil Nadu Transparency in Tenders Rules, 2000

(2) The qualification criteria in terms of the registration of contractors in the cases where the procuring entity has a system of registration of contractors, the required experience, available manufacturing and construction capacity, technical and other manpower and financial status shall be clearly stated in the tender documents.

16. Supply of tender documents.(1) The Tender Inviting Authority shall make available the tender documents from the date of publication of the tender. (2) The Tender Inviting Authority shall ensure that the tender documents are made available to any person who is willing to remit the cost of such documents.
3 2

(3) (a) The tender documents shall be made available at:(i) the office of the Tender Inviting Authority; (ii) any other office or place indicated by the procuring entity.
4

(b) In respect of procurement where the estimated value of procurement is Rupees Twenty Five Lakhs and above in value for construction and Rupees Ten Lakhs and above in value for all other categories of procurement inclusive of consultancies for construction, the tender document shall be made available for downloading free of cost at the website designated for this purpose by the Government. Tender documents may also be made available free of cost at such other web sites as may be indicated by the Tender Inviting Authority.
1

This clause was substituted for the expression, The qualification criteria in terms of the required experience, available manufacturing and construction capacity, technical and other manpower and financial status shall be clearly stated in the tender documents. (G.O.Ms.No.177, Finance (Salaries) Department, dated 22nd May 2007).

This clause was substituted for the expression, Tender Inviting Authority shall ensure that the tender documents are made available to any person who is willing to remit the cost of the documents provided that in the cases where the procuring entity has a system of registration of contractors, the tender documents will be supplied only to registered contractors in the appropriate class. (G.O.Ms.No.177, Finance (Salaries) Department, dated 22nd May 2007)

This clause was substituted for the expression, (3) The tender documents shall be made available at the following offices, namely:(i) the office of the Tender Inviting Authority; (ii) any other office or place indicated by the procuring entity. (G.O.Ms.No.177, Finance (Salaries) Department, dated 22nd May 2007).
4

This clause was substituted for the expression, In respect of procurement where the estimate value of procurement is Rupees Ten Lakhs and above, the tender document shall be made available for downloading free of cost at the web site designated for this purpose by the Government. Tender documents may also be made available free of cost at such other web sites as may be indicated by the Tender Inviting Authority (G.O.Ms.No.91,Finance (Salaries) Dept, dated 23rd March 2010)

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Tamil Nadu Transparency in Tenders Rules, 2000

(4) The Tender Inviting Authority shall send by registered post or courier the tender documents to any prospective tenderer who makes a request for the documents on payment of cost along with postal charges at the risk and responsibility of the prospective tenderer. 17. Clarification to tender documents.1

(1) At any time after the issue of the tender documents and before the opening of the tender, the Tender Inviting Authority may make any changes, modifications or amendments to the tender documents and shall send intimation of such change to all those who have purchased the original tender documents and upload corrigendum for the information of those who have downloaded the tender documents from the website.
2

(2) In case any one tenderer asks for a clarification to the tender documents before 48 hours of the opening of the Tender, the Tender Inviting Authority shall ensure that a reply is sent and copies of the reply to the clarification sought shall be communicated to all those who have purchased the tender documents without identifying the source of the query and upload such clarification to the designated website for the information of those who have downloaded the tender documents from the website, without identifying the source of the query .

This clause was substituted for the expression, At any time after the issue of the tender documents and before the opening of the tender, the Tender Inviting Authority may make any changes, modifications or amendments to the tender documents and shall send intimation of such change to all those who have purchased the original tender documents. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

This clause was substituted for the expression, In case any one tenderer asks for a clarification to the tender documents before 48 hours of the opening of the Tender, the Tender Inviting Authority shall ensure that a reply is sent and copies of the reply to the clarification sought will be communicated to all those who have purchased the tender documents without identifying the source of the query. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

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Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER-V.

RECEIPT OF TENDERS AND TENDER OPENING.


18. Place and time for receipt of tenders.1

(1)

The Tender Inviting Authority shall ensure that adequate arrangements are made for the proper receipt and safe custody of the tenders at the place indicated for the receipt of tenders. Such of the tenders that are received through electronic mail shall be kept electronically locked.

(2)
2

The Tender Inviting Authority shall take all measures to ensure that no intending tenderer is hindered in submitting his tender.

(3) The Tender Inviting Authority shall permit the submission of tenders by post or courier or by electronic submission through the designated website, wherever applicable, provided that the Tender Inviting Authority shall not be responsible for any delay in transit in such cases.;

(4) The Tender Inviting Authority shall not accept any tenders submitted by facsimile (fax) 4 (5) The Tender Inviting Authority may extend the last date and time for receiving tenders which shall be published on the designated website also after giving adequate notice to all intending tenderers in cases where: (a) the publication of the tender notice has been delayed; (b) the communication of changes, in the tender documents to the prospective tenderers under sub rule (1) of rule 17 took time;
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This clause was substituted for the expression, The Tender Inviting Authority shall ensure that adequate arrangements are made for the proper receipt and safe custody of the tenders at the place indicated for the receipt of tenders. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007). This clause was substituted for the expression, The Tender Inviting Authority shall permit the submission of tenders by post or courier, provided that the Tender Inviting Authority shall not be responsible for any delay in transit in such cases. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).
3 2

This clause was substituted for the expression, The Tender Inviting Authority shall not accept any tenders submitted by facsimile (fax) or by electronic mail. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

This clause was substituted for the expression, The Tender Inviting Authority may extend the last date and time for receiving tenders after giving adequate notice to all intending tenderers in cases where:- (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

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Tamil Nadu Transparency in Tenders Rules, 2000

(c) any of the tenderers requested clarifications communication of which took time to all the tenderers; and (d) any other reasonable grounds exist, for such extension which shall be recorded in writing by the Tender Inviting Authority. 19. Marking of covers in which the tender is submitted.The tenderer shall be responsible for properly superscribing and sealing the cover in which the tender is submitted and the Tender Inviting Authority shall not be responsible for accidental opening of the covers that are not properly superscripted and sealed as required in the tender documents before the time appointed for tender opening.

20. Minimum time for submission of tenders.(1) The Tender Inviting Authority shall ensure that adequate time is provided for the submission of tenders and a minimum time is allowed between date of publication of the Notice Inviting Tenders in the relevant Tender Bulletin or in the newspapers whichever is later and the last date for submission of tenders. This minimum period shall be as follows.(a) for tenders upto rupees two crores in value, fifteen days; and (b) for tenders in excess of rupees two crores in value, thirty days. (2) Any reduction in the time stipulated as per sub-rule (1) has to be specifically authorized by an authority superior to the Tender Inviting Authority for reasons to be recorded in writing. 21. Opening of tenders.(1) All the tenders received by the Tender Accepting Authority shall be opened at the time specified in the Notice Inviting Tenders and in cases where an extension of time for the submission of tenders has been given subsequent to the original Notice Inviting Tenders in accordance with sub-rule (5) of Rule 18 at the time so specified 1 subsequently. The e-submitted tenders may be permitted to be opened by a Tender Inviting Authority or a member of the Tender Scrutiny Committee from their new location if they are transferred after the issue of Notice Inviting Tender and before tender opening and where the new incumbent is yet to obtain his digital signature certified.;
1

This clause was added for the expression, All the tenders received by the Tender Accepting Authority shall be opened at the time specified in the Notice Inviting Tenders and in cases where an extension of time for the submission of tenders has been given subsequent to the original Notice Inviting Tenders in accordance with sub-rule (5) of Rule 18 at the time so specified subsequently. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

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Tamil Nadu Transparency in Tenders Rules, 2000

(2) The time specified for the opening of tenders shall be immediately after the closing time specified for the receipt of tenders allowing a reasonable period, not exceeding one hour, for the transportation of the tenders received to the place they are to be opened in the presence of the tenderers who choose to be present. (3)The tenders will be opened in the presence of the tenderers or one representative of the tenderer who chooses to be present.

22. Procedure to be followed at tender opening.The following procedure shall be followed at the tender opening.1

(a) All the envelopes containing tenders and the tenders received through the electronic mail in the designated website shall be counted. (b) All the tenders received in time shall be opened.

(c) Any tender received subsequently shall not be opened and shall be returned unopened to the tenderer and in the case of tenders submitted through electronic mail in the designated website, a report on the late submission of tenders shall be generated and the same shall be sent to the tenderers concerned. ; (d) On opening the tender, the members of the Tender Scrutiny Committee shall initial the main bid including the prices and any corrections; (e) A record of the corrections noticed at the time of the bid opening shall be maintained; (f) The name of the tenderers and the quoted prices should be read out aloud. (g) the fact whether earnest money deposit has been submitted and other documents required produced may be indicated, but this shall be merely an examination of the documents and not an evaluation; (h) Minutes of the tender opening shall be recorded. The signatures of the tenderers present shall be obtained unless any of the tenderers or his representative refuses to sign the minutes.

This clause was substituted for the expression, All the envelopes received containing tenders shall be counted. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007). This clause was substituted for the expression Any tender received subsequently shall not be opened and shall be returned unopened to the tenderer. (G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007).

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Tamil Nadu Transparency in Tenders Rules, 2000

23. Changes and alterations not to be permitted after tender opening.No changes, amendments which materially alter the tendered prices shall be permitted after the opening of the tender, except as per the procedure prescribed in sub-section (3) of section 10 of the Act. 24. Tender scrutiny committee.(1) A Tender Scrutiny Committee may be constituted to scrutinize the tender documents, supervise opening of tenders, to carry out the preliminary examination and detailed evaluation of the tenders received and to prepare an evaluation report for the consideration of the Tender Accepting Authority. (2) The constitution of a Tender Scrutiny Committee will be obligatory in all cases where the value of the procurement exceeds limit as may be specified.

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Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER-VI.

TENDER EVALUATION.
25. Tender evaluation to be in accordance with evaluation criteria.The Tender Accepting Authority shall cause the evaluation of tenders to be carried out strictly in accordance with the evaluation criteria indicated in the tender documents.

26. Time taken for evaluation and extension of tender validity.(1) The evaluation of tenders and award of contract shall be completed, as far as may be practicable, within the period for which the tenders are held valid. (2) The Tender Accepting Authority shall seek extension of the validity of tenders for the completion of evaluation. (3) In case the evaluation of tenders and award of contract is not completed within extended validity period, all the tenders shall be deemed to have become invalid and fresh tenders may be called for.

27. Process of tender evaluation to be confidential until the award of the contract is notified.(1) Subject to the provision of Sections 12 and 13 of the Act, the Tender Inviting Authority shall ensure the confidentiality of the process of tender evaluation until orders on the tenders are passed. (2) The Tender Accepting Authority shall cause the information on orders passed on the tenders published in the Tender Bulletin. (3) Tenderers shall not make attempts to establish unsolicited and unauthorised contact with the Tender Accepting authority, Tender Inviting Authority or Tender Scrutiny Committee after the opening of the Tender and prior to the notification of the Award and any attempt by any tenderer to bring to bear extraneous pressures on the Tender Accepting Authority shall be sufficient reason to disqualify the tenderer. (4) Notwithstanding anything contained in sub-rule (3), the Tender Inviting Authority or the Tender Accepting Authority may seek bonafide clarifications from tenderers relating to the tenders submitted by them during the evaluation of tenders.

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Tamil Nadu Transparency in Tenders Rules, 2000

28. Initial examination to determine substantial responsiveness.(1) The Tender Inviting Authority shall cause an initial examination of the tenders submitted to be carried out in order to determine their substantial responsiveness. (2) The initial examination shall consider the following factors, namely:(a) Whether the tenderer meets the eligibility criteria laid down in the tender documents;
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(b) (i) whether the crucial documents have been duly signed; (ii) whether the documents have been authenticated by digital signature, in the case of tenders submitted through electronic mail in the designated website. (c) Whether the requisite earnest money deposit has been furnished; (d) Whether the tender is substantially responsive to the technical specifications, commercial conditions set out in the bidding documents including the testing of samples where required.

(3) Tenders which on initial examination are found not to be substantially responsive under any of the clauses under sub-rule (2) may be rejected by the Tender Accepting Authority. 29. Determination of the lowest evaluated price.(1) Out of the tenders found to be substantially responsive after the initial examination the tenderers who has bid the lowest evaluated price in accordance with the evaluation criteria or the tenderers scoring the highest on the evaluation criteria specified as the case may be shall be determined. (2) In determining the lowest evaluated price, the following factors shall be considered, namely:(a) the quoted price shall be corrected for arithmetical errors; (b) in cases of discrepancy between the prices quoted in words and in figures, lower of the two shall be considered; (c) adjustments to the price quoted shall be made for deviations in the commercial conditions such as the delivery schedules and minor variations in the payment terms which are quantifiable but deemed to be non-material in the context of the particular tender;
2

(d) "the evaluation shall include all central duties such as customs duty and central excise duty and sales tax as a part of the price, as detailed below: This clause was added as per the orders issued in G.O.Ms.No.471, Finance (Salaries) Department, dated 30th September 2007.

This clause was substituted for the expression, "the evaluation shall include all central duties such as customs duty and central excise duty as a part of the price, but shall exclude sales tax if the bidders are from other States and Tamil Nadu;". [G.O.Ms.No.412, Finance (Salaries) Department, Dated 09-10-2003

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Tamil Nadu Transparency in Tenders Rules, 2000

(i) in evaluation of the price of an imported item, the price has to be determined inclusive of the customs duty; (ii) in evaluation of the price of articles which are subject to excise duty, the price has to be determined inclusive of such excise duty; (iii) in a tender where all the tenderers are from within the State of Tamil Nadu, or where all the tenderers are from outside the State of Tamil Nadu, the sales tax shall be included for the evaluation of the price; and (iv) In a tender where the tenderers are both from the State of Tamil Nadu as well as from outside the State of Tamil Nadu, the sales tax under the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of (1959) 1 shall be excluded for the evaluation of the price". (e) in the case of purchase of equipment, the operation and maintenance and spare part costs for appropriate periods as may be specified in bid documents may be quantified, where practicable and considered.
2

(f) the evaluation and comparison shall include fifteen percent price preference for domestic small scale industrial units and ten percent price preference for the Public Sector Undertakings of the Government in respect of products and quantities manufactured by them.

(3) In order to secure the best possible procurement price, negotiations with tenderer determined as per clauses (1) and (2) above are permissible subject to provisions in section 10 of the Act. 30. Preparation of evaluation report and award of tenders:(1) The Tender Scrutiny Committee or the officer evaluating the tender shall prepare detailed evaluation report which shall be considered by the Tender Accepting Authority before taking a final decision on the tender. (2) The evaluation report shall be prepared in the standardized format as may be prescribed. (3) As soon as the tenderer qualified to perform the contract is identified, in accordance with section 10(6) of the Act, the Tender Accepting Authority shall pass orders accepting the tender and communicate the order of acceptance to the successful tenderer. The Tender Accepting Authority will also send to the Tender Bulletin Officer a statement of evaluation of the tenders with a comparative statement of tenders received and decision thereon for publication in the Tender Bulletin.
1

The expression was substituted for the expression, sales tax by the notification issued in G.O.Ms.No.17, Finance (Salaries) Department, Dated 17.01.2005. 2 This clause was added by the notification issued in G.O.Ms.No.452 Finance (Salaries) Department, Dated 16-11-2001.

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Tamil Nadu Transparency in Tenders Rules, 2000

(4) Within such reasonable time as may be indicated in the tender documents, the tenderer whose tender has been accepted will be required to execute the contract agreement in the prescribed format. (5) In case the successful tenderer fails to execute necessary agreements as prescribed within the period specified, then his Earnest Money Deposit shall be forfeited and his tender held as non-responsive.

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Tamil Nadu Transparency in Tenders Rules, 2000

CHAPTER-VII.

EVALUATION AND AWARD OF TENDERS IN SPECIAL CASES.


31. Procurement in special cases.In the case of purchase of goods where the quantity offered at the lowest price is less than the total quantity required, the Tender Accepting Authority may, after placing orders with the lowest evaluated tenderer for the entire quantity offered by such tenderer subject to his ability to supply, adopt either or both of the following procedures to procure the balance quantity.(1) Negotiate with the next lowest tenderers in strict ascending order of evaluated price and require them to match the price offered by the lowest evaluated tenderer and place orders until the entire quantity required is ordered; or (2) Require all the other eligible tenderers who participated in the tender and offered a price higher than that offered by the lowest evaluated tenderer, to submit sealed offers of the quantity they would be willing to supply at the price quoted by the lowest evaluated tenderer, and thereafter place orders for the remaining required quantity with all those who match the lowest evaluated price such that those who bid lower prices in the original tender get a higher priority for supply. (3) In case the bidders other than the lowest evaluated bidder fail to agree to accept the lowest price or the total quantity offered by them at the price quoted by the tenderer with lowest evaluated price is less than the required quantity the Tender Accepting Authority may place orders for remaining required quantity at different rates with different suppliers in the ascending order of evaluated price until the entire quantity required is covered: Provided that, where different quantities have to be procured at more than one price from one or more tenderers, the Tender Accepting Authority may decide not to procure beyond a price considered economical although the entire quantity originally stated to be required in the tender documents is not ordered. (4) In cases where, the Tender Accepting Authority such as Tamil Nadu Electricity Board, Tamil Nadu Civil Supplies Corporation, Project Director, Integrated Child Development Scheme (ICDS) 1and Tamil Nadu State Transport Corporations is of the view that the commodity to be purchased is so vital in nature and the failure in supply would affect the public interest and that it is necessary to have more than one supplier, the Authority may place orders on the tenderer quoting the lowest evaluated price for not less than 60% of the quantity covered in the tender at the price quoted by him and place orders for the remaining quantity on the tenderers quoting the next lowest evaluated prices at the lowest evaluated price and shall specify this in the tender documents. "Provided that the commodity to be purchased by the Tamil Nadu State Transport Corporations shall be restricted to bus chassis only".
This expression was inserted by the notification issued in G.O.Ms.No.107,Finance (Salaries) Department, Dated 23-03-2002.
2 1

This proviso was added by the notification issued in G.O.Ms.No.286, Finance (Salaries) Department, Dated 13-08-2002.

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Tamil Nadu Transparency in Tenders Rules, 2000

32. Pre-qualification procedure.(1) The Tender Inviting Authority shall for reasons to be recorded in writing provide for pre-qualification of tenderers on the basis of,(a) experience and past performance in the execution of similar contracts; (b) capabilities of the tenderer with respect to personnel, equipment and construction or manufacturing facilities; (c) financial status and capacity (2) Only the bids of pre-qualified bidders shall be considered for evaluation. 33. Low value procurement.For the purposes of clause (d) of section 16 of the Act, low value procurement means any procurement, which is less than rupees 1 twenty five lakhs in value for construction and which is less than rupees ten lakhs in value for all other categories of procurement inclusive of consultancies for construction.

1 The word two was substituted by the word "five" by the notification issued in G.O.Ms.No.452, Finance (Salaries) Department, Dated 16-11-2001.Subsequently the words in bold were substituted for the word five lakhs in value by the notification issued in G.O Ms.No.392, Finance (Salaries) Department, dated 18th August 2009.

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Tamil Nadu Transparency in Tenders Rules, 2000

GOVERNMENT OF TAMIL NADU 2000

MANUSCRIPT SERIES

FINANCE (SALARIES) DEPARTMENT G.O.Ms.No.446, DATED 26th September, 2000 (Vikkirama, Purattasi-11, Thiruvalluvar Aandu 2031)

Rules - Tamil Nadu Transparency in Tenders Rules, 2000 - Framing of the Rules Notified. ORDER: The following Notification will be published in the Tamil Nadu Government Gazette, Extraordinary dated the 1st October, 2000. NOTIFICATION. In exercise of the powers conferred by sub-section(1) of section 22 of the Tamil Nadu Transparency in Tenders Act, 1998 (Tamil Nadu Act 43 of 1998), the Governor of Tamil Nadu hereby makes the following Rules:RULES (BY ORDER OF THE GOVERNOR) P.V. RAJARAMAN, SECRETARY TO GOVERNMENT. To The Works Manager, Government Central Press, Chennai-79. (for the publication of the notification and send 200 copies to Government) All Secretaries to Government. xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx. Stock File/Spare Copies. -/ Forwarded : By Order /sd/SECTION OFFICER.

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Tamil Nadu Transparency in Tenders Rules, 2000